Business · Energy & Commodities · 1 hr ago
Indonesia makes electricity exports to Singapore conditional on price
Indonesia says electricity exports to Singapore depend on an acceptable price.
Energy Minister Bahlil Lahadalia says the price must match Indonesia’s calculations and benefit both countries.
If no price deal is reached, Indonesia will prioritise power for domestic use.
The two countries are working on plans to trade up to 3.4 gigawatts of low-carbon electricity, with projects targeted to operate by 2035.
The proposed trade could help Singapore reduce its reliance on fossil fuels while drawing investment into renewable power and infrastructure in Indonesia.
Singapore has received conditional approvals for the planned imports, but Bahlil has not disclosed Indonesia’s price or when exports might start.
The plans now depend on agreement over price, while Indonesia’s energy ministry retains authority over export permits.
Indonesia will export electricity to Singapore only if the two countries agree on a price that Indonesia considers suitable, Energy Minister Bahlil Lahadalia said on Nov 2.
If the price is not agreed, Indonesia will prioritise domestic electricity needs.
Bahlil said Indonesia’s Energy and Mineral Resources Ministry had calculated a proposed export price but did not disclose it.
The countries are working towards bringing plans for up to 3.4 gigawatts of low-carbon electricity exports into operation by 2035.
Singapore’s energy minister has said domestic supply needs and cross-border cooperation are not mutually exclusive.
- Who
- Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia set out the condition. The proposed buyer is Singapore.
- What
- Indonesia may export electricity to Singapore if the price is acceptable to Indonesia; otherwise, it will prioritise domestic needs.
- When
- Bahlil made the remarks on Nov 2, 2026.
- Where
- Bahlil spoke at the Presidential Palace in Jakarta.
- Why
- The countries have not settled on a suitable price, and Indonesia says it must meet domestic electricity needs first.
Indonesian government
Singapore government
Price
Indonesian government
Bahlil said exports are possible if Singapore accepts Indonesia’s price; he said the ministry had calculated the price.
Singapore government
Singapore’s position on the proposed price is not stated.
Domestic supply and cooperation
Indonesian government
Bahlil said Indonesia would prioritise domestic electricity needs if the price was not right.
Singapore government
Singapore Foreign Minister Vivian Balakrishnan said meeting domestic needs and pursuing cross-border cooperation were not mutually exclusive.
Bahlil said Indonesia was open to supplying electricity to Singapore if the terms were fair and mutually beneficial.
Bahlil and Singapore’s then energy minister Tan See Leng signed three memorandums of understanding covering cross-border electricity trade, carbon capture and storage, and a sustainable industrial zone.
Singapore Prime Minister Lawrence Wong and Indonesian President Prabowo Subianto reaffirmed their commitment to accelerating cross-border electricity trade.
Singapore Foreign Minister Vivian Balakrishnan said meeting domestic needs and pursuing cross-border energy cooperation were not mutually exclusive.
Bahlil said electricity exports would depend on agreement over a suitable price and that Indonesia would prioritise domestic needs if the price was not right.
- Proposed capacity
- Up to 3.4 gigawatts
- Target for projects to operate
- 2035
- Singapore import approvals
- 2 gigawatts conditionally licensed, with another 1.4 gigawatts conditionally approved
- Export price
- Calculated by Indonesia’s Energy and Mineral Resources Ministry; amount not disclosed
- Responsible Indonesian ministry
- Energy and Mineral Resources Ministry, which Bahlil said issues permits
2 sources
What people are saying
As long as the price is right, follow our prices, that is possible. But if the price is not right, we will prioritise domestic needs
First, we must ensure it is mutually beneficial. If the price is not suitable, we cannot proceed. That is why I have asked Danantara not to be lobbied to accept a lower price.
Working together and looking after your own needs. It’s not either or. It’s not a binary.